BKS Clarifies Rumors About Barnes & Noble Nook Layoffs

by Christopher Freeburn | February 11, 2014 10:26 am

BKS Clarifies Rumors About Barnes & Noble Nook Layoffs

On Monday, struggling bookseller Barnes & Noble (BKS[1]) denied a media report[2] that it had eliminated the hardware engineering team for its Nook tablet.

nook 630 300x225 BKS Clarifies Rumors About Barnes & Noble Nook Layoffs [3]
Source: Flickr[4]

A Barnes & Noble spokesperson said that the company was still “committed” to Nook products. However, she conceded that some jobs had been cut as Barnes & Noble seeks to align “Nook’s cost structure with business realities,” the Associated Press noted.

Barnes & Noble said that it planned to lay off workers, but did not reveal an exact number of employees to be trimmed.

The Nook unit once appeared to be a bright spot in Barnes & Noble’s otherwise troubled business. However, the tablet has now fallen far behind[5] Amazon’s (AMZN[6]) Kindle and Apple’s (AAPL[7]) iPad. During the holiday shopping season, sales of Nook products plummeted a whopping 61%.

Falling Nook sales prompted the ouster[8] of Barnes & Noble CEO William Lynch last year.

Barnes & Noble stock slipped about 1% in Tuesday morning trading. Barnes & Noble stock has gained more than 10% over the past year. BKS stock closed at $16.06 a share on Monday.

Endnotes:
  1. BKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKS
  2. denied a media report: http://www.huffingtonpost.com/2014/02/10/barnes-noble-layoffs_n_4762540.html
  3. [Image]: http://investorplace.com/wp-content/uploads/2012/05/nook_630.jpg
  4. Flickr: http://www.flickr.com/photos/grossnickle/
  5. has now fallen far behind: http://investorplace.com/2014/01/barnes-noble-nook-bks-aapl-amzn-kindle/#.Uvo-43lhOf0
  6. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  7. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  8. prompted the ouster: http://investorplace.com/2013/07/nook-failure-puts-barnes-noble-ceo-on-unemployment-line/#.Uvo_s3lhOf0

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